Prices in a Market Economy Perform a Rationing Function Because

question 137

Multiple Choice

Prices in a market economy perform a rationing function because they reflect

• A) the demand of all buyers in the market.
• B) the extent to which the goods are necessities.
• C) the strength of the supply curve.
• D) the relative scarcity of the goods.

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Definitions:

Delegation

A contracting party’s (a delegator’s) transfer of his or her duty to perform to a third party who is not part of the original contract (a delegatee).

Personal Services

Services provided by individuals based on their unique skills or talents, often involving physical or mental efforts rather than producing goods.

Delegatee

A third party who is not part of the original contract but to whom duties to perform are transferred by one of the contracting parties (a delegator).

First-Assignment-In-Time Rule

A rule which states that the first party granted an assignment is the party correctly entitled to the contractual right.